Novartis (NYSE:NVS) Posts Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Novartis exceeded third-quarter expectations: adjusted EPS was $2.46 versus the $2.25 consensus, while revenue of $15.03 billion surpassed estimates and rose 4.4% year over year.
• Management raised its 2026 core operating-income outlook to growth ranging from flat to the low double digits, supported by strong demand for Kisqali, Kesimpta, Leqvio, Scemblix, Pluvicto and Rhapsido.
• Reported profitability declined sharply because of a roughly $1.9 billion impairment tied to the failed del-desiran trial, while the company also faces clinical setbacks, generic competition and upcoming margin pressures.

Novartis (NYSE:NVS - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $2.46 earnings per share for the quarter, topping the consensus estimate of $2.25 by $0.21, FiscalAI reports. Novartis had a net margin of 23.29% and a return on equity of 38.56%. The business had revenue of $15.03 billion during the quarter, compared to analysts' expectations of $14.53 billion. During the same quarter in the prior year, the business posted $2.25 earnings per share. Novartis's revenue was up 4.4% compared to the same quarter last year.

Here are the key takeaways from Novartis' conference call:

• Novartis reported Q3 sales growth of 4% in constant currency, core operating income growth of 10%, and a 41.6% core operating margin. The company raised 2026 core operating income guidance to growth ranging from in line to low double digits, while maintaining low-single-digit sales growth guidance.
• Priority brands continued to drive performance, including Kisqali (+37%), Kesimpta (+22%), Leqvio (+63%), Scemblix (+67%), Pluvicto (+20%), and Rhapsido’s strong launch. Novartis also raised Rhapsido’s combined CSU and CIndU peak-sales outlook to more than $4 billion.
• The company highlighted favorable pipeline and launch developments, including positive remibrutinib multiple-sclerosis data, FDA approval for Rhapsido, expanded Pluvicto approvals, and ongoing filings for remibrutinib and pelabresib. Management estimates remibrutinib could generate more than $4 billion in MS sales, excluding potential non-relapsing SPMS upside.
• Reported operating income fell 61% and net income declined 71%, primarily because of a $1.9 billion partial impairment related to del-desiran after its phase 3 HARBOR trial missed its endpoint. Pelacarsen’s phase 3 ORION-4 study also failed to meet its primary endpoint, while further development of related cardiovascular assets remains under review.
• Management expects continued productivity benefits, particularly in SG&A, but warned that fourth-quarter margins will decline sequentially due to year-end spending, higher royalties, and lower other income as U.S. Xolair biosimilars expand. European Entresto genericization is another factor investors will need to monitor into 2027.

Novartis Stock Performance

Shares of Novartis stock traded up $1.92 during trading on Tuesday, reaching $155.73. The company's stock had a trading volume of 803,312 shares, compared to its average volume of 1,990,688. The business's 50-day moving average price is $148.13 and its 200-day moving average price is $151.40. Novartis has a 52 week low of $121.57 and a 52 week high of $170.46. The company has a quick ratio of 0.67, a current ratio of 0.86 and a debt-to-equity ratio of 0.89. The firm has a market cap of $297.15 billion, a PE ratio of 23.54, a P/E/G ratio of 2.74 and a beta of 0.41.

Key Stories Impacting Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Q3 results exceeded expectations. Novartis reported earnings of $2.46 per share, above the $2.25 consensus estimate, while revenue reached $15.03 billion versus expectations of $14.53 billion. Core earnings and net sales increased, indicating continued operating momentum. Novartis Q3 Core Earnings, Net Sales Increase
• Positive Sentiment: Novartis raised its 2026 core operating-income outlook while maintaining its net-sales growth guidance. Management cited strong sales of newer medicines and productivity gains as helping offset revenue erosion from generic competition. Novartis lifts profit outlook
• Positive Sentiment: Phase 3 data for remibrutinib in multiple sclerosis reportedly showed lower relapse rates, with no Hy’s Law liver-safety cases. The results could support the potential of a future growth driver in Novartis’ pipeline. Remibrutinib MS trial results
• Neutral Sentiment: NVS shares crossed above their 200-day moving average, a technical signal that may attract momentum-oriented investors, although it does not change the company’s underlying fundamentals. Shares cross above 200-day moving average
• Negative Sentiment: Reported Q3 profit declined because of a roughly $1.9 billion impairment charge, higher expenses and setbacks in clinical trials. Investors must also contend with ongoing patent expirations and generic erosion, which remain risks to longer-term growth. Novartis raises outlook despite impairment

Analysts Set New Price Targets

NVS has been the subject of a number of recent research reports. UBS Group reiterated a "neutral" rating on shares of Novartis in a research note on Thursday, September 17th. Bank of America reaffirmed a "buy" rating on shares of Novartis in a research note on Tuesday, September 8th. The Goldman Sachs Group reiterated a "sell" rating on shares of Novartis in a research note on Monday, September 21st. Deutsche Bank Aktiengesellschaft restated a "neutral" rating on shares of Novartis in a report on Thursday, September 17th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Novartis in a report on Thursday. Six investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $145.60.

About Novartis

Novartis AG is a Switzerland-based pharmaceutical company focused on the discovery, development and commercialization of innovative medicines. The company's research and commercial activities span areas including cardiovascular, renal and metabolic diseases, immunology, neuroscience, oncology and hematology. Its portfolio includes prescription medicines such as Entresto, Cosentyx, Kisqali, Kesimpta, Leqvio, Pluvicto and Scemblix.

Novartis serves patients and healthcare providers in markets around the world.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.